"It is extremely pleasing to see the first toll milling campaign at Lakewood completed successfully and the mine safely and efficiently moving to completion in the March Quarter. Teal has been a great success to date and has placed the Company in a strong financial position to aggressively pursue our new discovery and resource growth strategy utilising our increasing cash reserves."

Overview

With the pre-strip complete at Teal Stage 2 in the December Quarter 2017, the focus to date has been on ore mining from both Stage 1 and Stage 2 of the pit. Strip ratios have decreased considerably to 2:1 with the supergene oxide ore exposed across the entire pit floor in the southern section. In total, 185,000t of ore has been mined grading 3.25g/t for 19,330 ounces with a further 30,000t of oxide and transitional ore estimated to be mined at similar grades through to mine completion in February 2018 (see Note 1,2 below).

Pit wall conditions remain under constant review with a radar monitoring system installed to ensure the safe and efficient completion of the pit.

The first ore processing campaign at the 1Mtpa Lakewood toll milling facility (see Figure 2 in link below) was completed successfully and ran longer than estimated (24 days) ending on 5 January 2018. Full reconciliations have been compiled with 40,528 dry tonnes of ore milled at a final calculated head grade of 3.64g/t. Plant metallurgical recovery exceeded expectations at 96% producing 4,550 fine ounces of gold.

Average gold price received for the campaign was A$1,672 per ounce generating $7.6m in gross revenue.

The second toll milling campaign commenced on 19 January and is estimated to process 30,000t of oxide ore from existing ROM stockpiles with an estimated average mine predicted grade of 3.2g/t Au (see Note 1,2 below).

The third and final campaign is scheduled for late February and will process the remaining oxide and transitional material mined as the pit is completed. It is anticipated that full reconciliations for both campaigns will be completed prior to March Quarter end enabling the release of final production and financial results early in the June Quarter.

Intermin maintains guidance at the combined Teal open pit of 18,000 to 20,000 ounces recovered at an All In Cost (AIC) of A$1,000 to $1,100 per ounce.

The successful Teal open cut has put the Company in a strong financial position to commence the aggressive discovery and Resource growth drilling program in February 2018, to continue Feasibility work as part of the mine development pipeline and pursue further acquisitions at both asset and corporate level.

Notes:

1 As announced to the ASX on 6 July 2016, 25 July and 6 September 2017

Intermin Resources Limited (ASX:IRC) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal Stage 1 gold mine is currently in production.

Intermin is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core projects and build a sustainable development pipeline.

Intermin is targeting the definition of significant high grade open cut and underground gold deposits, has acquired highly prospective tenure and will continue to actively pursue consolidation and value-adding joint venture opportunities for the benefit of all stakeholders.